A discussion on hr activities a multinational firm must engage

As more firms move outside their domestic borders into the dynamic world of international business, the globalisation of world markets appears to be gaining momentum. To operate in an international environment, a human resource department must engage in a number of activities that would not be necessary in a domestic environment.

Many of these factors may be a source of anxiety for the expatriate and considerable time and attention is required to resolve potential problems successfully. N o t surprisingly, senior managers w i t h little international experience and successful careers built on domestic experience may assume that there is a great deal of transferability between domestic and international H R M practices.

Managers in the twenty-first century are being challenged to operate in an increasingly complex, interdependent, and dynamic global environment. Effective human resource management HRM is essentially, especially where international expansion places additional stress on limited resources.

Though English is a well established international language yet, provision of language translation service for internal and external correspondence is necessary especially if the organisation has branches in non-English speaking countries.

So too is the task facing many US firms in terms of developing global managers — an issue w h i c h we shall return to i n Chapter 7. Global management then is the process of developing strategies, designing and operating systems and working with people around the world to ensure sustained competitive advantage.

However, size is not the only key variable when l o o k i n g at a multinational — the extent of reliance of the multinational on its home — country domestic market is also very i m p o r t a n t.

The demands of a large domestic market present a challenge to the globalization efforts of many US firms. A l l of the top ten firms based on transnationality are European. Ethical questions can arise when a practice that is legal and accepted in the host country may be at best unethical and at worst illegal in the home country.

Expatriates are subject to international taxation, and often have both domestic and host-country tax liabilities. I n such situations, managers may tend to focus on domestic issues and minimize differences between international and domestic environments. In any foreign environment, managers need to handle a set of dynamic and fast — changing variables including the all-pervasive variable of culture that affects every facet of daily management.

To compete aggressively, firms must make considerable investments overseas — not only capital investment but also investment in well-trained managers with the skills essential to working effectively in a multicultural environment.

A similar p o i n t has been made by V a n Den Buike and his colleagues i n their study of the role of small nations i n the global economy. This globalisation of business is forcing managers to grapple with complex issues as they seek to gain or sustain a competitive advantage.

For example, it w i l l be more likely to use an international division as the way it organizes its international activities see Chapter 3 and even if it uses a global product struc-ture, the importance of the domestic market may be pervasive.

The reason for this lower r a n k i n g of US firms i n terms of the transnational index is as obvious as it is i m p o r t a n t — the size of the domestic market for US firms.

Those involved in global business have to adjust their strategies and management styles to those regions of the world in which they want to operate, whether directly or through some form of alliance. A multinational firm also needs to provide administrative services for expatriates in the host countries in which it operates.

Providing administrative e services can often be a time-consuming and complex activity because policies and procedures are not always clear cut and may conflict with local conditions.Title: Homework P, 4, 5 for International human resource management Page number: 3 1, Discuss two HR activities in which a multinational firm must engage that would not be required in a domestic environment.

Discuss 2 HR activities in which a multinational firm must engage that would not be required in a domestic. Domestic and International Human Resource Management Explore BrainMass. Discuss two HR activities in which a multinational firm must engage, which would not be required in a domestic environment September 20, No Comments CHAPTER 1 INTRODUCTION.

Activities that a human resource department must engaged to operate in an international environment are a human resource department must engage in a number of activities that would not be necessary in a domestic environment. A multinational firm also needs to provide administrative services for expatriates in the host countries in which.

Discuss two HR activities in which a multinational firm must engage, which would not be required in a domestic environment? Seminar 1 Discussion Questions (Due Saturday, 30 points, post to the weekly discussion board) Discuss at least two HR activities in which a multinational firm must engage that would not be required in a domestic environment.

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